The Bill passed its third reading on August 15 with 63 votes to 57. New Zealand First and the Green Party voted for the Bill.

"This Government believes that New Zealanders should not be outbid by wealthier foreign buyers," Associate Finance Minister David Parker said at the time.

"Whether it’s a beautiful lakeside or oceanfront estate, or a modest suburban house, this law ensures that the market for our homes is set in New Zealand not on the international market."

But Property Institute CEO Ashley Church believes it will do nothing to reduce house prices.

"The evidence is, across the Tasman and other parts of the world, that the imposition of foreign buyers bans… have made virtually no difference to those markets either," he told Newshub.

In fact Mr Church believes the ban could have an adverse effect on the New Zealand economy as the country has previously welcomed foreign investment.

"That's not necessarily going to be the case going forward and that's a retrograde step for our economy as a country that needs foreign investment and needs money to come from other parts of the world," he said.